COUNTRY REPORT MALAYSIAthe world’s second-largest producer of
NAND chips, to KK PANGEA , a special-purpose
company of the consortium.
Toshiba will reinvest ¥350.5bn, while
South Korea’s SK Hynix, Bain and Japan’s
Hoya will fund ¥395bn, ¥212bn and ¥27bn,
respectively. Four US companies – Apple,
Kingston Technology, Seagate Technology
and Dell Technologies Capital – will invest
¥415.5bn together.
Japan’s three megas, Mitsubishi UFJ
Financial Group , Mizuho Bank and Sumitomo
Mitsui Banking Corp , are expected to play a
central role in the debt financing.
The acquisition is targeted for
completion at the end of March, Toshiba
has said.
› ADVANTAGE PARTNERS EXITS RIRAKU
Advantage Partners has sold massage salon
operator RIRAKU to Yukihiro Takenouchi,
one of its founders, for an undisclosed
amount.
The Japanese private-equity firm says
in a statement the sale was completed on
September 15. Nomura Securities was the
adviser to arrange an auction, launched in
May.
Riraku has an Ebitda of less than ¥5bn,
a source has said, pointing out that the
company has been performing well.
Advantage Partners exited its investment
in the Osaka-based company less than four
years after acquiring it through a leveraged
buyout in October 2013. Special-purpose
company AP37 took a ¥3bn five-year
financing from Mizuho Bank for the LBO in
September that year.
As of August 31, Riraku operated 569
salons nationwide.
› FPG RENEWS FOUR BORROWINGS
FINANCIAL PRODUCTS GROUP signed last week
four commitment lines, totalling ¥38.9bn,
according to the Tokyo Stock Exchange-
listed financial services firm.
Sumitomo Mitsui Banking Corp was the
arranger and agent on a ¥19.1bn one-year
loan, which replaced a ¥19.9bn one-year
facility. Sumitomo Mitsui Trust Bank came in
as co-arranger, while Aeon Bank , Mie Bank ,
Senshu Ikeda Bank , Shoko Chukin Bank , Tokyo
Tomin Bank and Tsukuba Bank joined in
syndication.
This loan was signed last Wednesday.
Mizuho Bank was arranger and agent on a
¥13bn one-year loan to refinance a ¥13bn
one-year facility. Ashikaga Bank , Fukuho Bank ,
Gunma Bank , Hiroshima Bank , Hokuetsu Bank ,
Keiyo Bank , Shinsei Bank , Shizuoka Bank and
Tokushima Bank joined in syndication.
Signing of this loan was scheduled for
last Friday.
Chiba Bank was arranger and agent on a
¥2.8bn one-year loan to renew a ¥2.8bn
one-year facility. Aomori Bank , Chugoku
Bank , 77 Bank and Toho Bank joined in
syndication.
This loan was signed last Wednesday.
Bank of Yokohama was arranger and agent
on a ¥4bn one-year loan to renew a ¥3.4bn
one-year facility. Higashi-Nippon Bank ,
Hokuriku Bank , Saga Bank and Yamaguchi Bank
joined in syndication.
The loan was sgned last Monday.
The loans have two financial covenants- the borrower must maintain a minimum
of 75% of net assets and cannot have any
recurring losses.
Funds are for FPG’s tax-leasing
arrangement business.
Last month, the borrower raised a
US$136m loan to back its acquisition of
seven aircraft.
› MARUJUN GETS THREE-YEAR FUNDSGifu-based auto-parts maker MARUJUN said
it signed a ¥14.851bn three-year loan last
Tuesday for working capital.
The facility, comprising a ¥10.851bn
term loan and a ¥4bn commitment line,
pays a fee of ¥228m.
Mitsubishi UFJ Financial Group is the
arranger and agent, Mizuho Bank came in
as joint arranger, while Juroku Bank , Ogaki
Kyoritsu Bank , Shiga Bank and Sumitomo Mitsui
Trust Bank joined as co-arrangers. Nippon Life
Insurance came aboard as lender.
Funds are scheduled to be drawn last
Friday.EQUITY CAPITAL MARKETS
› CJP TN PUTS UP ¥44.6BN BLOCKCJP TN, a limited partnership affiliated
with The Carlyle Group, has sold a block
of shares of ¥44.6bn (US$399m) in TSUBAKI
NAKASHIMA , a Japanese manufacturer of
precision balls.
The block of 17.6m secondary shares,
with an overallotment option of close to
1m shares, priced at ¥2,394 per share, or a
5% discount to the September 26 close of
¥2,520. The deal had an indicative discount
range of 3%–5%.
The Japanese tranche accounted for 40%
of the shares and the international portion
for 60%.
There is a 180-day lock-up on the issuer
and certain directors, executive officers
and employees, according to the term-
sheet.
Nomura and Goldman Sachs were joint
global coordinators, while UBS was co-
global coordinator.› FUJITSU SELLS ¥34.5BN FUJI BLOCKJapanese electronics conglomerate Fujitsu
has sold a ¥34.5bn block of shares in FUJI
ELECTRIC , a source close to the deal has
confirmed.
The block of 54m shares was priced at
¥625.2 per share, or a discount of around
2% to the September 25 close.
There is a 180-day lock-up period on the
seller.
SMBC Nikko was the sole lead manager
and bookrunner.MALAYSIA
DEBT CAPITAL MARKETS
› YINSON MAKES PUBLIC DEBUTOil services company YINSON HOLDINGS on
Thursday priced US$100m senior unsecured
perpetual non-call five securities at par to
yield 7.85% after tightening from guidance
in the 8.00% area. (See News.)
The Reg S issue had anchor orders of
US$80m.
Yinson Juniper is the issuer and Yinson
Holdings is the parent guarantor.
The unrated notes, issued off the
company’s US$500m multi-currency
perpetual securities programme, will reset
to the initial spread over Treasuries of
592.4bp every five years and have a 500bp
step-up if not called.
Proceeds will be used for debt
refinancing and general corporate
purposes.
Standard Chartered Bank and Credit Suisse
were joint lead managers.
This was Yinson’s first public offshore
bond issue, though it privately placed US
dollar perpetual non-call fives at 7% in
September 2015.› SP GENERATION PLANS PROJECT SUKUKSOUTHERN POWER GENERATION is meeting fixed-
income investors in Malaysia ahead of a
launch in October of project-financing
Islamic bonds to raise M$4bn (US$964m).
CIMB is sole principal adviser on
the company’s sukuk Wakalah MTN
programme, as well as joint lead arranger
and manager with Maybank Investment Bank
for the offering.
The Malaysian power developer, with
state-backed Tenaga Nasional and SIPP
Energy as joint owners, will use the
proceeds to build a 2x720MW combined
cycle gas-fired plant in Johor state.